207 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

Deferred Maintenance and Repairs

DM&R result from maintenance not being performed on a timely basis and is the estimated cost to bring governmentowned PP&E to an acceptable condition. DM&R exclude the cost of expanding the capacity of assets or upgrading them to

serve needs different from those originally intended. The consequences of not performing regular maintenance and repairs

could include increased safety hazards, poor service to the public, higher costs in the future, and inefficient operations.

Estimated DM&R costs are not accrued in the Statements of Net Cost or recognized as a liability on the Balance Sheets.

The amounts disclosed for DM&R are allowed to be measured using one of the following three methods:

• Condition assessment surveys which are periodic inspections of government-owned property to determine the

current condition and estimated cost to bring the property to an acceptable condition.

• Life-cycle cost forecast that is an acquisition or procurement technique that considers operation, maintenance, and

other costs in addition to the acquisition cost of assets.

• Any other method of choice that is similar to the condition assessment survey or life-cycle costing methods.

The table below of DM&R is presented as a single estimate in accordance with SFFAS No. 42, Deferred Maintenance

and Repairs: Amending Statements of Federal Financial Accounting Standards 6, 14, 29, and 32. These amounts were all

measured using the condition assessment survey method. Please refer to the individual financial statements of DOD, DOI,

VA, DOE, USDA, NASA, HHS, GSA, DHS, State, DOC, and DOT for additional information on DM&R.

Deferred Maintenance and Repairs as of September 30, 2021, and 2020

(In billions of dollars) 2021 2020

Asset category:

General property, plant, and equipment ................................................................................................ 174.8 182.1 .............................

Heritage assets ................................................................................................................................ 24.8 ................................ 25.6 

Stewardship land................................................................................................................................ 0.7 ..............................0.6 

Total deferred maintenance and repairs ................................................................................................ 200.3 208.3..........................

Other Claims for Refunds

Other claims for refunds are claims filed for which specific administrative actions such as review by the courts are

required before payments can be made and unasserted claims for refund by taxpayers or importers that may or may not

become payable depending upon the resolution of subsequent events. As stated in SFFAS No. 7, Accounting for Revenue and

Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting, unasserted claims for refund

such as unfiled claims for refunds or drawbacks for which no claim has been filed, are not known, therefore estimates are not

able to be determined, and are not recognized on the Balance Sheet. Claims filed for refunds where required administrative

actions are not yet complete as of the close of the reporting period may not be known however, the refunds, may be

reasonably estimable.

Management has estimated amounts that may be paid out as other claims for tax refunds. This estimate represents an

amount (principal and interest) that may be paid for claims pending judicial review by the federal courts or, internally, by

appeals. The total estimated payout (including principal and interest) for claims pending judicial review by the federal courts

is $1.5 billion and $1.6 billion for FYs 2021 and 2020, respectively. For those under appeal, the estimated payout is $1.0

billion and $1.7 billion for FYs 2021 and 2020, respectively. To the extent judgments against the government for these claims

prompt other similarly situated taxpayers to file similar refund claims, these amounts could become significantly greater.